Office of Sponsored Programs

General

Below is a list of commonly asked questions regarding proposal preparation and award administration.  If you do not find the answer to your question, please contact the appropriate OSP personnel.

By clicking the questions below, you will be directed to the answer.

1. What are the services that we offer ?
2. Who is eligible to serve as Principal Investigator?

   Only individuals holding permanent faculty rank above instructor, or research scientist/project director or higher position may normally accept the role of a Principal Investigator. If the faculty member is a Lecturer with an instruction or public service type proposal, then the department head/director will need to serve as the principal investigator. 

   Rank	Can Serve as PI?	Can Serve as Co-PI?
   Retired Faculty	Yes *	Yes
   Research Assistant Professor	Yes	Yes
   Research Associate Professor	Yes	Yes
   Research Professor	Yes	Yes
   Project Associate	No	Yes
   Sr. Project Associate	Not Eligible but Exceptions may be approved by V.P. for Research	Yes
   Project Director	Yes	Yes
   Research Associate	No	Yes
   Sr. Research Associate	Not Eligible but Exceptions may be approved by V.P. for Research	Yes
   Adjunct Faculty	Not Eligible but Exceptions may be approved by Dept Head	Yes
   Postdoctoral Associate	w/ Dept Head, Dean, V.P. for Research approval	Yes
   Research Scientist	Yes	Yes
   Sr. Research Scientist	Yes	Yes
   Instructor / Lecturer	No	Yes
   Admin Prof Faculty	Yes	Yes
   Visiting Professor	Yes	Yes
   Graduate Student	No	No

   * A retired faculty member may continue to conduct research and serve as a co-investigator on a sponsored program if the principal investigator is a regular faculty member. A retired faculty member may serve as a principal investigator if the following conditions are met:

   1. Faculty member must be awarded emeritus status
   2. Faculty member must have the concurrence of his/her department head. The department head will consider such items as available space and importance of the research program to the department.
   3. The department head must agree to be responsbile for both the fiscal and technical aspects of the research effort should the retired faculty not perform in accordance with the sponsor requirements. The department head may be required to sign a statement to this effect each time a retired faculty member submits a proposal.
   4. The retired faculty member, if required by the department head, must report to the department annually on the work accomplished during the past year.
   5. The rate of pay a retired faculty member may charge a sponsor is limited to the rate of pay received at time of retirement. This base rate will be adjusted by the average faculty salary increase each year in which faculty receive increases. Annual compensation cannot exceed the base salary.

   

3. How do I route a proposal?

   All proposals should be routed through the Office of Sponsored Programs using the OSP Approval Form.  The form should be completed in full and reviewed and signed by your appropriate departmental administrator and the appropriate dean's office.  Once signed, please forward with the proposal to the Office of Sponsored Programs to the attention of the appropriate Project Administrator for review and official university signature.

   An OSP Approval From is required when:

   1. A new proposal is submitted to a Sponsor.
   2. A revised proposal is submitted to a Sponsor that includes budget or cost sharing changes. Does not apply to technical modifications.
   3. A continuation proposal is submitted to a Sponsor - even if the additional years' funds were requested in the original proposal. The key here is the word "submitted." If the PI must submit a budget and request for continued funding, we assign a new proposal number (a) so that we can locate the paperwork for negotiations with the sponsor and readily match the award with the proposal when it comes in and (b) because the direction of the research may change as well as rates and budget amounts and it is easier to track all aspects of the research if we have new paperwork covered by a current proposal number.
   4. Additional funds are received that were not requested in the original proposal.
   5. A check or award is received in OSP and no proposal exists.
      
      PLEASE USE THE GENERAL RESEARCH FUNDING DEPOSIT APPROVAL FORM WHEN DEPOSITING CHECKS INTO EITHER OSP VARIOUS ACCOUNTS OR OSP FOUNDATION ACCOUNTS.
      

   

4. Who copies and mails the proposals?

   The Office of Sponsored Programs provides the service of copying and mailing your proposal.  In return, all that we ask is that the proposal be provided to our office at least four business days in advance of the deadline to ensure that we have time to review, copy, and mail.

   

5. What are facilities and administrative costs (indirect or / overhead)?

   Facilities and Administrative costs, commonly referred to as indirect costs, are charges not directly borne by the project. For example, cost associated with utilities and administration are indirectly charged. Please see Overhead Explained for further details.

   

6. How do I route a proposal when Virginia Tech is the sub recipient?

   Proposals where Virginia Tech is the subrecipient should be treated the same as if we were processing the prime proposal.  The institution that is processing the prime proposal will request that the Office of Sponsored Programs review and approve our portion of the proposal.

   

7. How do I handle having subcontracts in my proposal?

   Each subcontract should be properly identified in your prime budget (usually under the line contractual).  In addition, you should have a separate institutional approved itemized budget and scope of work for each subcontract reflecting the approved overhead.  Virginia Tech will need a consortium letter from the subcontractee (sample letter).  You should be aware that the federal agencies will require the same information of the subcontract's Principal Investigator as is required of yourself.  Please note that Virginia Tech will access overhead on the first $25,000 of each subcontract.  It is important when involving subcontracts in your budgets that you allow additional time for the paperwork to be processed at the subrecipient's home institution.

   

8. How do I transfer a grant to Virginia Tech?

   Review the agency guidelines governing the grant and notify the Office of Sponsored Programs of your desire to transfer your grant.  The previous institution will need to prepare a relinquishing statement (required for federal projects) to send to the sponsoring agency.  Obtain a copy of the relinquishing statement for your records and the Virginia Tech Office of Sponsored Programs.  Route the transfer as if it was a Virginia Tech proposal using the Approval Form with the attached revised budget and completed forms required by the agency.  If the project involves issues of compliance, you will need to secure approval from the appropriate Virginia Tech official (human subjects, animal use, recombinant DNA).

   

9. How do I transfer a grant from Virginia Tech?

   Review the sponsor's guidelines governing the transferring of the grant.  Please verify that the transfers are possible and contact the transfer recipient for how to reapply for the funds.  Write a letter to the Virginia Tech Office of Sponsored Programs providing the Title, Fund Number, Date of Transfer, and any Equipment purchased with the grant that the PI wishes to transfer.  The letter must be signed by the PI, department chair, and the dean.  For federal projects, the PI is required to complete a Final Invention Statement.   Send the signed letter and the Final Invention Statement to OSP.  Upon receipt, the we will prepare a relinquishing statement (federal projects) to be sent to the sponsoring agency.

   

10. What happens if my expenditures exceed my awarded budget?

    If expenditures exceed the awarded budget, the policy regarding Non-Sufficient Funds will be implemented.  Freeze Flags in the financial system will freeze the account for any further expenditures (excluding salaries and fringes).   Salaries and fringes will be shifted to the departmental overhead distribution account.   The Principal Investigator will be liable for pursuing a funding supplement to cover the costs and ensuring that the account is reconciled.

    

11. Can I charge administrative and clerical costs to my sponsored project?

    For federally sponsored projects, Virginia Tech must adhere to the Office of Management and Budget (OMB) Circular A-21, "Cost Principles for Educational Institutions."  Therefore, the salaries of administrative and clerical staff, office supplies, postage, local telephone costs, and memberships should normally be treated as indirect costs.  Direct charging of these types of costs may be appropriate in some circumstances.  Please refer to Virginia Tech Policy 3240: Consistency in Charging Administrative and Clerical Costs.

    

12. What is a Letter of Guarantee(LOG)?

    In some instances where a sponsor has indicated a proposal will be funded but the award execution is delayed, a principal investigator may wish to enact a Letter of Guarantee (LOG). A LOG is a statement by an authorized official of that department ( see example) requesting that OSP establish a fund prior to the official award being fully executed. LOGs should be set up for no more than 90 days with a corresponding budget for no more than 90 days of anticipated expenditures. Please be aware that in requesting a LOG, the department is guaranteeing the funds in the event the award is not fully executed.

    

13. Who owns equipment purchased from sponsored funds?

    Title to equipment purchased from sponsored funds is dependent upon the sponsor. Virgina Tech retains the title to most federally sponsored research equipment and we always try to negotiate title for all other sponsored equipment. However, some sponsors choose to retain title and therefore loan the equipment to Virginia Tech.

    

14. Can sponsored equipment be transferred from Virginia Tech to another institution?

    Faculty moving to another university who want to transfer their research equipment with them must have prior approval from the department head, dean, and sponsor if equipment was purchased with sponsored funds. Upon receiving approval, the Office of the Controller - Fixed Asset system must be notified. The equipment may or may not be transferred dependent upon who retains title. Typically, equipment purchased off of federal grants (PHS and NSF) is easily transferrable.

    

15. What is the appropriate salary to budget in the event the PI is a retired faculty member?

    The rate of pay a retired faculty member may charge a sponsor is limited to the rate of pay received at the time of retirement. This rate may be adjusted by the average faculty increase each year in which faculty receive increases. Please note that in order to qualify for the VRS retirement benefits, compensation from any state agency must be part-time.

    

16. When is a proposal considered to be off-campus and therefore subject to the lower overhead rate?

    The definition of off-campus is dependent upon how the work is to be charged rather than where the work is to be done. Our negotiated rate agreement defines off-campus:

    For all activities performed in facilities not owned by the institution and to which rent is directly allocated to the project, the off-campus rate will apply. Grants or contract will not be subject to more than one F&A cost rate. If more than 50% of a project is performed off-campus, the off-campus rate will apply to the entire project.

    For example, if the work is to be completed in facilities in Danville, facilities for which Virginia Tech either owns or leases centrally, the proposal would be subject to the on-campus F&A rate. However, if the facilities were to be paid for directly by the grant itself, the off-campus rate would apply.

    

17. What are the differences between the different VT funding vehicles for private funds?

    The Virginia Tech Sponsored Funding Matrix for Private Funds provides an itemized summary of the differences in the various VT funding vehicles. If you have questions regarding the matrix, please consult with your assigned pre-award administrator.

    

18. What do I do if I am informed that my grant or contract is subject to either the International Traffic in Arms Regulations (ITAR) or Export Administration Regulations (EAR)?

    ITAR regulations as administered by the Department of Defense makes certain items subject to export control. A listing of controlled items can be found in the Catalog of Federal Regulations section 22 CFR 120. If the item you are working on in the course of your research is on the list, then you may be required to apply for an export liscense if you intend to publish or present this data or if non-U.S. citizens are involved in the research.
    
    EAR is administered by the Department of Commerce and FAQs regarding EAR are available at the following url: http://chaos.fedworld.gov/bxa/faq.html .

    

Industrial Affiliates

1. What is required to develop an industrial affiliates program?

   Many affiliate programs are created out of demand by the industrial partners to transcend the traditional principal investigator / sponsor relationship with the hopes of establishing and developing long-term symbiotic relationships with the university. Access to top-rate faculty and potential employees (graduate students) is a primary motivation for industrial participation. For an annual fee, affiliates remain abreast of the cutting edge research within a general field of interest.

   

2. Is there a minimum number of affiliates required before initiating an affiliates program?

   Affiliate programs are approved on the basis that multiple affiliates will be recruited and signed. The Office of the Vice President for Research will work with new programs to allow time for the recruitment of multiple affiliates. Please keep note that the affiliates program is not a substitute for sponsored research contracts.

   

3. Who is responsible for reviewing and approving affiliate membership agreements?

   The Office of the Vice President for Research retains responsibility for the approval and review of affiliate programs. A new request for the establishment of an affiliate program will be reviewed to ensure that there are not conflicts with on-going research agreements and that the requested program adheres to the guiding principles as set forth in OVPR procedure 01-03.

   

4. What restrictions are there on the use of the affiliate fees?

   Affiliate fees are deposited in the Virginia Tech Foundation and are restricted only in the sense that the monies be used to support the affiliates program as set forth in the approved affiliates agreement. This may include the support of graduate students, conference proceedings, meetings, etc..

   

5. Who handles the deposit and administration of the affiliate fees?

   Once an agreement has been approved, the initiating unit overseeing the affiliate program should forward the agreements to the participating members requesting their signature and payment of the affiliate fee. Upon receipt of the fee, please use the General Research Funding Deposit Approval Form to deposit the funds into your affiliate account in the Virginia Tech Foundation. If the program is new, the Virginia Tech Foundation may require copies of the approved affiliate agreements.

   

6. What if an affiliate member requests proprietary research, testing or consulting services?

   An industrial affiliate is not entitled to specify the protocol to be used in the conduct of a specific research effort. However, membership may entitle an affiliate to request the inclusion of its products or processes in the research activities. Affiliate fees should never be used to consult, test, or provide dedicated research for a particular affiliate member. If a member requests work of such nature, a sponsored contract will need to be developed.

   

7. What if affiliate members desire intellectual property rights?

   Affiliates requesting specific intellectual property rights will receive only those rights and options as allowed by the approved affiliate membership agreement.

   

8. Can graduate students work directly for an affiliate member?

   No, graduate student involvement is limited to supporting the research for the entire affiliate membership and not one particular affiliate.

   

9. What publication restrictions are allowed?

   Affiliate agreements in general do not allow for any publication restrictions on the research being funded on behalf of the affiliates. However, affiliate sponsored proceedings and results may be limited for specific period of time to the affiliate members but must ultimately be made available to the general public. Some affiliate programs provide affiliate members with a first look at results prior to publishing in academic journals. However, this first look should never preclude a publication.

   

10. What happens if I cannot attract or retain a core of affiliate members to justify the program?

    The Office of the Vice President for Research will work with you to allow appropriate time for recruiting affiliate members. We realize that affiliates will join at different times. However, we reserve the right to review approved programs to ensure that there is a sufficient number of affiliates to warrant the continuation of the affiliates program. We will remain sensitive that an affiliate program is not for the sole benefit of a few.

    

Industrial Sponsorship

Below is a list of commonly asked questions regarding award administration of various OSP and Foundation Accounts. If you do not find the answer to your question, please contact the appropriate OSP personnel.

1. Should I contact OSP prior to negotiating with an industrial sponsor?
   

   OSP realizes that a lot of industrial sponsorship is born out of a PI's relationship with the sponsor.If discussions with a potential industrial sponsor reach the point of negotiation (other than technical), we ask that you notify the appropriate OSP personnel. We will provide service and support in negotiating the terms and conditions. As a state entity that is non-profit there are several terms and conditions that we cannot agree too that are commonly found in agreements with industrial sponsors. Additionally, we would advise that if you are fairly comfortable with the potential industrial sponsor than we would assist you in providing a copy of our standard research agreement. Secondly, we may already have a "Master Agreement" in place with the sponsor and therefore would not need to negotiated terms. Thirdly, many smaller companies do not have a standard agreement and we advise that they use ours.

   

2. What agreement do we use for industrial support?
   

   Virginia Tech has a standard "generic" research agreement that should be used in all industrial sponsorship. We would prefer to start our negotiations with an industrial sponsor on our own terms and conditions.

   

3. What is the difference between a fixed priced and cost reimbursable contract?
   

   A fixed price agreement is a set price for the defined project. OSP will bill based on a fixed schedule. It is our preference that we negotiate fixed priced payments according to the following format:

   • 25% of the total project costs within thirty days of full execution of the contract.
   • 25% of the total project costs at the midway point of the project
   • 25% of the total project costs approximately three-quarters through the project
   • 25% of the total project costs upon completion.

   

4. What things should we negotiate out of industrial contracts?
   

   Three of the main clauses that we are sensitive to are Intellectual Property (IP) rights, indemnification, and governing laws. Industrial sponsors are usually more aggressive in trying to maintain the ownership of any intellectual property and thus publication rights. We will work to ensure that neither IP or publications rights are sacrificed. Industrial sponsors should be aware that, as a state entity, we cannot indemnify or hold harmless. The governing law must be the Commonwealth of Virginia.

   

5. Is overhead ever waived for industrial support?
   

   No, we should never waive our overhead for an industrial sponsor. If it is the sponsor's policy to not pay overhead, then we require a copy of either the sponsor's policy and/or board minutes identifying their policy.

   

6. How do I process a no-cost extension on an industrial account?
   

   If you find that you are in need of additional time to meet the sponsored project goals, then a no-cost time extension may be warranted. The PI should initiate a request to the sponsor with a letter, phone call, fax, or email. The PI should state the technical reasons which necessitates this action and request that the approval be formally conveyed in writing to the appropriate OSP Post Administrator.

   

7. What happens if sponsor fails to pay?
   

   If the sponsor fails to pay an invoice or a payment installment, then OSP will initiate our policy regarding accounts receivables. If we cannot be sufficiently assured that a sponsor intends to pay, then we reserve the right to "freeze" the account to prevent any further expenditures. Failure on part of the sponsor to pay any outstanding debt will result in the account being sent to collections.

   

8. What happens if expenditures exceed the revenue?
   

   The principal investigator and the home department are responsible for any cost overruns the may occur. Principal investigators should be sensitive to the fact that a firm fixed contract is fixed. It is agreed up front that the sponsor will pay a fixed price and therefore the investigators will need to ensure the deliverable is met for the price agreed upon.

   

9. Should payments be linked to deliverables?
   

   Payments should never be linked to deliverables. If the industrial sponsor insists on withholding some amount, we usually do not allow more than 25% of the project costs, then we want to be very clear in the agreement what the sponsor expects when the work is completed. The more detail built into the agreement the better the protection. Some sponsors may not require anything more than an itemized list of expenditures while others may require copies of lab books, final reports, dissertations, etc...

   

10. How does OSP know if an industrial sponsor is solvent and will be fiscally responsible?
    

    First, a sound agreement specifying all the terms and conditions (payments) is our best insurance against questionable sponsors. Problems of payments typically arise with small companies or new ones in the start-up phase of their lifecycle. However, for many of the small companies we may not be able to find a financial history to determine credit worthiness. In this case, we will work with the department and the principal investigator to determine what risks they are willing to take in the event a sponsor cannot pay. Failure to pay is almost unilaterally aligned with the smaller companies. Whenever a larger company fails to pay, it is usually a result of a dispute with the deliverables of the project.

    

11. What are Teaming Agreements or Master Agreements?
    

    Teaming Agreements are created when more than two entities are collaborating on a project or group of projects. This may mean a team of several universities combined with several private entities or public institutions. A Master Agreement is typically originated by a sponsor who sees that Virginia Tech will provide research support on many different projects. Instead of several mutually exclusive agreements a company may wish to create a Master Agreement identifying the common terms and conditions under which they and Virginia Tech will operate the research.

    

Various/Foundation

Below is a list of commonly asked questions regarding award administration of various OSP and Foundation Accounts. If you do not find the answer to your question, please contact the appropriate OSP personnel.

1. Why is a single deposit for General Research support limited to $25,000?
   

   General Research Support funding is not intended to be a substitute for regular restricted projects. Therefore, large programmatic projects should be proposed and established as regular restricted accounts that contain negotiated terms.

   

2. Can I deposit state or federal funds in either General Research or Field Trials/Field Studies?
   

   No, various accounts are intended for the deposit of private funding only. Federal and state funding is considered restricted and should be treated as such.

   

3. Are indirect charges assessed against my royalty payments?
   

   No, royalty payments are not assessed overhead.

   

4. What if the sponsor indicates that they do not pay overhead?
   

   You must solicit approval from your department head and dean for anything less than 15% on General Research Funding deposits. Sponsored Programs will review and requests for deposit that does not include the 15% overhead charge. The University has elected to lower the overhead from nearly 60% to the 15% of each deposit. This reduction reflects that the various funds are unrestricted and administration of agreements are not required.

   

5. Why is everything budgeted as supplies?
   

   General Research Support, Field Trials/Field Studies, and Residual Funds operate as cash basis accounts (similar to your personal checking account) that are unrestricted by a sponsor but remain subject to the Commonwealth of Virginia procurement regulations. Budgeting all deposits as supplies eliminates the need for an itemized budget.

   

6. Can I pay salaries out of these types of accounts?
   

   Yes, salaries can be supported from these types of accounts but remains subject to department and dean approval.

   

7. What happens if I do not spend my funds in the fiscal year in which they were deposited?
   

   All various fund balances are not subject to being spent by the end of a fiscal year. The balances are there until expended.

   

8. What if my residual balance is greater than the maximum allowed of 25%?
   

   Any residual transfer request where the residual balance exceeds 25% must have a explanation of why the residual is significant. Events may have changed during the course of the firm fixed-priced contract that resulted in the larger than expected balance. Any request that exceeds the 25% maximum will be reviewed by the Director of Sponsored Programs to ensure that the original budget was appropriate and that the transfer resulted from unforeseen circumstances such as substitution of cheaper labor.

   

9. Can I transfer funds between the various account types?
   

   No, the various funds are segregated for accountability and transfers between funds are not allowed.

   

10. Can I split fund purchases between my various funds?
    

    Yes, split purchases are acceptable.

    

11. Why do I have to transfer gift funds to an OSP Foundation account?
    

    All gifts are to be deposited in the Virginia Tech Foundation. Upon deposit, funds may be transferred to an OSP Foundation to pay for such items as salaries, wages, and graduate stipends.

    

12. Who owns equipment purchased from various funds?
    

    Title to equipment purchased from various funds will remain with the University.

    

13. When is a deliverable considered too restrictive for a various fund?
    

    OSP recognizes that sponsors may request a report detailing the results of your work. Courtesy copies of reports are not considered contractual deliverables. However, if any payment is subject to the receipt and acceptance of a specified deliverable, then OSP will treat the project as restricted and will work to establish a restricted fund.

    

14. Can either General Research Funding or Field Trials/Field Studies be billable?
    

    No, all various fund types operate on a cash basis only.

    

15. Who can make deposits to Field Trials/Field Studies?
    

    The use of the Field Trials/Field Studies accounts are for 229 colleges only (Vet Med, Ag and Life Sciences, and Natural Resources).

    

16. What is the difference between a gift and a grant?
    

    A gift is provided as a unrestricted donation (no strings attached) for your use and should be deposited in the VT Foundation. With a gift, the donor intends to count the funding as a tax deduction. Identifying donor intent may require questioning the donor to access their intentions. Any deposits where either the check or the accompanying letter identifies the deposit as a gift must be deposited into the VT Foundation.

    A grant may require a specific statement of work but not a required deliverable. All grants should be routed as a sponsored project. Any grant requiring an agreement, billing, or deliverables should be routed as a restricted project using our Proposal Approval Form.